Which type of inventory cost includes costs paid for storage space?

Ordering costs arise from the expenses incurred when placing and receiving orders for inventory replenishment. These costs include administrative expenses, shipping fees, and any related procurement costs. Ordering costs do not include storage expenses, as they are focused on the acquisition process rather than ongoing inventory management.

Stock-out costs refer to the losses incurred when inventory is not available to meet customer demand. These costs can include lost sales, customer dissatisfaction, and potential damage to brand reputation. Stock-out costs are not related to storage expenses, but rather to the consequences of insufficient inventory levels.

Purchase costs involve the actual prices paid to acquire inventory from suppliers. This includes the cost of the goods themselves and any associated transportation fees. While crucial to inventory management, purchase costs do not encompass expenses related to storage or holding inventory.